All Eyes On Historic Budget of 2017

The upcoming 2016-17 Budget session will be the most epic event and attention -grabber in India. The economy has face ups and down in the past month, with the announcement of Demonetization, but nevertheless, there is economic growth with regards to the road sector.

Nitin Gadkari, Road, and Transport Minister expects the Finance Minister to have soft corners and to give much importance to infrastructure and power sector during the Budget.

A “Historic event”, Nitin Gadkari attribute to this Budget 2017 .

The Roads and Transport minister said, “I expect the Finance Minister to give importance to the infrastructure and power sector in the Budget” as reported by ET Now. Gadkari is looking at the possibilities of the pros and con, believe that the country has a conducive environment for development. He said that Investors are more wholeheartedly to invest in India, in sectors related to Infrastructure, power and energy, and also state that, “I believe that India is the best destination for investment”.

Scenario of the Economy

The odds on, that the budget 2017 will be rescheduled to an earlier date of 1st February. The Modi Government Budget became out of the ordinary, is a result of demonetization thereby leaving a common man with unnecessary encumbrance. While most analysts hope that ‘Budget 2017’ to be taxpayer friendly

With the hopeful idea to reduce the weight of tax to a common man, as a result of demonetization, the government may increase the base slab from 2.5 lakhs to 4 lakhs, giving more opportunity to a common man.

Jaitley also acts to this “knowing the rise of digital transaction” he has found ways and means to curbed it. He said “once they are substantially digital, they get caught up in the tax net. Therefore, the future taxation level would be much higher than what is currently being collected. This would also enable the government at some stage to make taxes more reasonable, which will apply to both direct and indirect taxes”.

Different Perspective

In a talk with FE Online, Amarpal Chadha, Tax Partner & mobility leader for EY said, “There are chances that a hike in tax exemption limit may be announced, but I am not sure if it will go up to `4 lakh. Realistically the Finance Minister may announce a hike from the current `2.5 lakh to ` 3 lakh or maybe even to ` 3.5 lakh. 4 lakh rupees would be a lot because then a lot of people who currently pay tax would go out of the ambit”2

Finance minister, Arun Jaitley may look to the purchasing power of the people. Parizad Sirwalla, Partner, and Head, Global Mobility Services, KPMG in India viewed and informed FE that “If demonetization would not have happened, I would not have expected any populist measure in Budget 2017 on the tax front. But with all the pain the people are feeling because of the implementation of the move, there are chances that Budget 2017 may see measures that will increase the spending power in the hands of the common man,”